Federal Deposit Insurance CorporationOffice of the Comptroller of the CurrencyBoard of Governors of the Federal Reserve System

FIL-80-2001September 21, 2001

BANK REPORTS

TO:

CHIEF EXECUTIVE OFFICER

SUBJECT:

Reports of Condition and Income (Call Report) for Third Quarter 2001

The enclosed materials pertain to the Reports of Condition and Income (Call Report) for the September 30, 2001, report date. Please complete your third quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by October 30, 2001, in accordance with the filing requirements discussed below. No extensions of time for submitting reports are granted.

If you complete the preparation and review of your Call Report before October 30, please file the report immediately rather than waiting until the submission deadline. Should you later find that certain information needs to be revised, please make the appropriate changes to your Call Report and promptly submit the revised data file electronically. Early submission aids the banking agencies in editing and reviewing the reports.

The Financial Accounting Standards Board has recently issued two new accounting standards on business combinations and on goodwill and other intangible assets. Banks must adopt these new accounting rules for Call Report purposes in accordance with the effective dates of the standards based on their fiscal years. Please refer to the enclosed Supplemental Instructions for additional information about these standards as well as guidance on other topics relating to the preparation of your Call Report.

Banks should note that, when completing Schedule RC-R, Regulatory Capital, they are not required to risk weight each asset that qualifies for a risk weight of less than 100 percent at its lower risk weight. Rather, each bank is permitted to decide for itself how detailed a risk-weighting analysis to perform. However, Call Report software products cannot for the most part determine the amounts and types of a bank's assets that qualify for lower risk weights without intervention by the bank's Call Report preparer. Therefore, to receive the benefit of the lower risk weights when the software calculates the risk-based capital ratios, banks are reminded that their Call Report preparer must specifically identify these lower risk-weighted assets and input them to the appropriate risk weight categories in the Schedule RC-R portion of their software. For example, on the FFIEC 041 report form, banks with total assets of less than $300 million are no longer required to report the amount of their currency and coin in another Call Report schedule. This means that the Call Report preparer must identify this amount and input it in Schedule RC-R if the bank wishes to take advantage of the less than 100 percent risk weight accorded these assets. The same attention is necessary for securities, loans, and other assets with favorable risk weights that are not specifically reported elsewhere in the Call Report.

Each bank must file its September 30, 2001, Call Report in one of the following two ways:

A bank may use computer software to prepare its report and then file the report directly with the banking agencies' electronic collection agent, Electronic Data Systems Corporation (EDS). The Call Report data file can be sent to EDS electronically by modem or on a computer diskette.

An institution may complete its report in paper form and arrange with EDS, a Call Report software vendor, or another party to convert its paper report to electronic form. If a party other than EDS performs this service, that party must electronically transmit the bank's Call Report data file to EDS.

The filing of a Call Report that is submitted electronically to EDS by modem will be considered timely if it is transmitted to EDS no later than October 30, 2001. A bank that submits its Call Report to EDS on a computer diskette must make sure that the diskette is properly addressed, mailed first class, and postmarked on or before October 27, 2001, to be considered filed on time. Alternatively, a bank may send the diskette to EDS using an overnight delivery system no later than October 29, 2001. However, a computer diskette that EDS cannot read will not be accepted and the bank must resubmit its report in readable form. This may result in EDS receiving the bank's Call Report data file after the submission deadline.

A bank that has or has had more than one foreign office, other than a "shell" branch or an International Banking Facility, is permitted an additional 15 days to complete its Call Report. Such a bank is required to electronically transmit its report to EDS no later than November 14, 2001.

A sample set of September 30, 2001, report forms is enclosed for your reference. Sample forms also are available on both the Federal Financial Institutions Examination Council's Web site (www.ffiec.gov) and the FDIC's Web site (www.fdic.gov).

For further information or assistance concerning the Call Reports, state member banks should contact their Federal Reserve District Bank. National and FDIC-supervised banks should contact the FDIC's Reports Analysis and Quality Control Section in Washington, D.C., by telephone at (800) 688-FDIC (3342) or (202) 898-6607, Monday through Friday between 8:00 a.m. and 5:00 p.m., Eastern Time, or by e-mail at supervision@fdic.gov. Thank you for your cooperation.

Emory W. Rushton
Senior Deputy Comptroller and
Chief National Bank Examiner
Office of the
Comptroller of the Currency

Richard Spillenkothen
Director
Division of Banking
Supervision and Regulation
Board of Governors of the
Federal Reserve System